Jim Cramer, the host of CNBC’s Mad Money program, recommends investing in Boeing Co. rather than controversial cryptocurrency bitcoin. The television personality also said he is bewildered with the current crypto mania in the market.
Dividing Wall Street
Cramer, the former hedge fund manager, is confused why the market is so obsessed the popular digital asset bitcoin. The economic guru shared a story of “two cigarette-puffing” Wall Streeters constantly requesting him to remark on the cryptocurrency. In response, the economic guru said: “No bitcoin,” instead “Boeing.”
“I might as well have said, ‘Put down those Marlboros and let’s go have some of my wife’s quinoa.’ Their contempt was palpable. I’m chalking it up to millennial lunacy.”
On January 9, 2018, Reuters predicted the airline industry would benefit as the number of traveling passenger will increase by 5.5 to 6 percent in 2018, higher than the historic level of five percent. Although, the growth will be slower than the year 2017 which was at 7.25 percent.
As Boeing is a leader in the market, these figures will be beneficial for the American company.
The controversial cryptocurrency has divided Wall Street, with some favoring the volatile virtual currency while others are supporting it. JPMorgan CEO Jamie Dimon, who partially flip-flopped, said he regretted calling bitcoin “fraud.”
The Switch from Stocks to Crypto
The investment ecosystem has witnessed several investors switching from the traditional form of investments to more modern investment opportunities such as bitcoin. Bitcoin price grew by 1,500 percent in 2017, making it one of the most alluring investment alternatives.
Even though the digital asset isn’t considered a legitimate financial instrument, it has experienced a rising stream of money flow.
In a recent interview with Warren Buffett, the renowned investor said, “I can say almost with certainty that cryptocurrencies will come to a bad end.” Additionally, he revealed that he would never invest in the volatile cryptocurrency.
The future of bitcoin is same as its nature, unpredictable. If the market responds to Jim Cramer’s points, then the crypto market could have a difficult year ahead.
Will traditional investors switch from stocks to crypto? Let us know your thoughts in comments section.